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BHP Billiton Plc - Bhp Billiton To Increase Capacity At Western Australian
Iron Ore Operations
BHP Billiton Plc
JSE Share codes: BIL
ISIN: GB0000566504
Date 20 October 2005
BHP BILLITON TO INCREASE CAPACITY AT WESTERN AUSTRALIAN IRON ORE OPERATIONS
BHP Billiton today announced approval for the Rapid Growth Project 3 (RGP3)
which will increase capacity at its Area C iron ore mine in Western Australia by
20 million tonnes per annum (Mtpa) to 42Mtpa. Work on the project will commence
immediately, with initial production forecast to begin in the fourth quarter of
calendar year 2007.
The Board has approved capital expenditure of US$1.3 billion for BHP Billiton"s
85 per cent share of the project. This includes approximately US$235 million of
sustaining capital required for the replacement of ageing port and rail
infrastructure. The capital expenditure fully reflects recent cost increases
that have been experienced in the resources sector in Western Australia.
The RGP3 scope includes the development of a new pit at the Area C `E Deposit"
and the construction of new crushing and screening facilities at the mine"s `C
Deposit".
Port and rail facilities will also be expanded to facilitate this capacity
increase and position the business for further staged growth. The expansion will
include a new stockyard, upgraded car dumper and ship loading facilities, as
well as additional rolling stock and rail sidings.
Due to the nature of the expansion activities, particularly in relation to the
berth and car dumper upgrades, some latent capacity will result at the port
operations. This capacity will be taken up as future expansions come on line.
President BHP Billiton Iron Ore Graeme Hunt said RGP3 is part of the company"s
broad investment program to meet growing demand for all steel making raw
materials.
"The project builds on our outstanding track record of bringing new production
capacity on line over the past few years and lays the foundation for further
expansions that will drive the future success of our business," he said.
"We are currently in the feasibility stage for Rapid Growth Project 4, which is
focussed on expanding the Newman operations, and are studying further growth
options to ensure we continue meeting customer needs over coming decades."
Since 2001 BHP Billiton has increased production at its Western Australian iron
ore operations from around 68Mtpa to over 100Mtpa in 2005. This has been
achieved through the completion of projects such as Area C and the Products and
Capacity Expansion in 2003 and 2004 respectively, the Accelerated Expansion in
2004, and more recent projects including RGP1. All of these projects have been
completed on time and within budget.
The RGP2 expansion also remains on schedule and budget with initial production
forecast to commence in the second half of calendar year 2006.
Key elements of RGP3 include:
Area C
Development of a new pit at `E Deposit";
Construction of an overland conveyor from `E Deposit" to the main processing
facilities at `C Deposit";
Construction of new crushing and screening facilities at `C Deposit";
Second blending yard at `C Deposit".
Port
Car dumper upgrades at Nelson Point;
Conveyor upgrades at Nelson Point;
`C Berth" upgrade to take 250,000dwt vessels at Finucane Island;
Increased ship loading speed and flexibility at Finucane Island.
Rail
New mainline and spur sidings;
Loop modifications at Area C;
Additional locomotives;
Additional ore wagons.
Following completion of RGP3 and the previously announced RGP2, the total system
capacity of the Western Australian iron ore operations will be 129Mtpa.
BHP Billiton"s partners in the Mt Newman Joint Venture are ITOCHU Minerals &
Energy of Australia and Mitsui-Itochu Iron.
Further information on BHP Billiton can be found on our Internet site:
http://www.bhpbilliton.com
Australia United Kingdom
Jane Belcher, Investor Relations Mark Lidiard, Investor & Media
Tel: +61 3 9609 3952 Mobile: +61 Relations
417 031 653 Tel: +44 20 7802 4156 Mobile: +44
email: 7769 934 942
Jane.H.Belcher@bhpbilliton.com email: Mark.Lidiard@bhpbilliton.com
Tania Price, Media Relations Ariane Gentil, Media Relations
Tel: +61 3 9609 3815 Mobile: +61 Tel: +44 20 7802 4177 Mobile: +44
419 152 780 78 81 51 8715
email: Tania.Price@bhpbilliton.com email: Ariane.Gentil@bhpbilliton.com
United States South Africa
Tracey Whitehead, Investor & Media Michael Campbell, Investor & Media
Relations Relations
Tel: US +1 713 599 6100 or UK +44 Tel: +27 11 376 3360 Mobile: +27 82
20 7802 4031 458 2587
Mobile: +44 7917 648 093 email:
email: Michael.J.Campbell@bhpbilliton.com
Tracey.Whitehead@bhpbilliton.com
Date: 20/10/2005 08:36:12 AM Produced by the JSE SENS Department
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